Mandleson speaks a good line but is in denial. This is simple economics the banks used £700 billion from wholesale markets and the Bof E offers £500 billionin support . Until the shortfall is made up forget the banks lifting a finger it just wont happen

Robert D Marshall, LONDON, UK

Well, Lordy, Lordy - you can always spot the Labour peer , can't you !
Dribble running down the chin, drivel coming out the mouth and a void between the ears !
Better get out while you can comrades !

OZ, Perth, Australia

How about Mr Mandelson forcing the government to release the £550 million pounds of depositors money which has been frozen in Kaupthing Singer and Friedlander bank in the UK. This money belong to depositors in KSF Isle of Man. If it were the labour parties funds involved it would be handed back.

Peter, Stockholm, Sweden

Labour's answer is more subprime lending. What a great idea! We can just keep spending more and more on borrowed money and the recession will go away.

Peter, London,

There has never been a more reckless or oppressive government in the history of British democracy. There must *never* be a Labour government again, come what may.

James E. Petts, Burnham, England

do they not understand that forcing the banks to lend (through their and greenspans injections of liquidity) is what caused the credit crunch in the first place? insanity is doing the same things over and over and expecting different results!

will, grimsby, uk

Nationalisation, mass CCTV and monitoring, an ID card system, state micromanagement of education, families and thoughts (was that un PC?) Banks cant give what they dont have if they do they'll just need more aid. Maybe thats what Comrade Mandleson wants? Another bailout means more state control.

Myles Bailey, London, United Kingdom

Your government is lost and desperate. The situation seems so clear from further afield. More Debt does not solve Debt problems, ever. For those of you who have been prudent, stay your course, do not be tempted down this path of financial folly. It will get worse until Gordon Brown is removed.

Ian, Singapore,

Hang on, Mandelson wants to respond to a crisis precipitated by US government mandating nonviable loans by forcing banks to make loans they would rather not? Here we go again ...

Faustino, Brisbane (ex-pat), Australia

Let us not be under any illusion! Banks and the banking fraternity will need to be dragged kicking and screaming into accepting a role of social responsibility. Banks will not demonstrate good faith and have a sense of cooperation without being "prodded" every step of the way.

Gillian, Lausanne, Switzerland

The nation would do well to remember that it was Clinton's fiddling with the banking system and forcing banks to make no-down payment loans to those with bad or no credit histories that started the entire financial meltdown. Just what is Mandelson's expertise and training in the field of banking?

Bob Evans, Lowestoft, Suffolk, Back home in Blighty

why would banks lend to businesses without credit insurance - surely this is the elephant in the room

Andy Jobs, Liverpool, UK

How can banks re-capitalise if they don't receive less than they give out? - Please let labour call an early election before we have to call in the IMF to bail us out.

Jim, London,

I am instinctively against this sort of thing, but the banks, by their apalling behaviour, will get their just desserts with the serpentine Prince of Darkness leaning over their shoulders - rather them than me; I'd have my back firmly up against the wall!

alex, forres, uk

Spot on sophie smith
took the words right out of my mouth.

David, Bristol,

If banks see a good proposition - and they have the money - they will lend, at a sensible commercial rate. 'Forcing' them to lend under any other circumstances means they will end up with a poor quality loan book, the very thing which caused these problems in the first place.

john, oxford, england

I must agree with Chris, Cambridge.

Why is Mandleson stil credible?

Where will it all end?

Graham, Littlehampton,

If the banks wont do it then it shouldn't be beyond the capablity of the government to provide mortgage finance directly through the New-Builders so that they can offer a turnkey package to would - be new-build purchasers. In time that could be extended to trade-ins as well.

john, juffar, bahrain

It is plainly obvious that the country is runned by people who do not care about it. Ulterior motives are behind every decision for either personal gain or party gain.
Join the Euro, throw out the Americans and find an Englishman to run this country.

John Smith, London, UK

Darers go first Lord Mandy !

ian payne, walsall,

George, London. The taxpayers has already lent or guaranteed loans of £500 Billion to the banks. And for those talking about 100% plus mortgages, the government isn't suggesting this. The banks aren't lending money to anybody, for anything, forcing businesses out of business.

David Leslie, Perth, Scotland

Why not 'force' banks to refund the penalty payments extracted from accounts that were overdrawn - Oh, that's right the only people affected were those on low incomes.

Wendy, London,

Resistance is futile, oh and by the way Mr Banker, give the Zanulab party coffers a boost whilst you're at it.

Rob Bain, Derby,

Tony Blair got out just in time, didn't he? Of course, it's all nothing to do with him. He had a 'brilliant' chancellor, you see, who strangely did nothing to stop houses being used for speculation, depriving first time buyers with a real need. 'Equity' release bought people Ranger Rovers.....

Ross Grafton, Horsham, UK

Why should the banks listen to Lord (of the unelected) Mandelson ? It's like some kind of sick joke,but the only one who is laughing is Mandelson himself !

Philip, Braintree,

Banks exist under Government license. Best withdraw it; put the banks into liquidation and for Government to buy for £1 and save depositors. Bank staff can stay on with cut in wages
and banks can be run on non profit basis. Credit card interest should be 10% max and loans made only against deposits

john bentley, Loule, Portugal

What is responsible lending? 125% or 100% mortgages?
But that led to spiralling house prices.
Wake up Mandelson! The country is mired in debt! The spending spree was funded by equity release! That has been spent! Unless banks lend 100% mortgages again most people couldn't afford a garden shed!

sophie smith, london, uk

Great - so the banks will be 'encouraged' - forced if 'necessary' to make loans that they would not normally make for business reasons - that'll help restore confidence won't it!

I would get out while you still can - I'm certainly not coming back while these lunatics run the asylum

ed, melbourne, australia

Mr Mandleson, Gordon Brown and Nu Labour just don't have any financial sense. If all their policies of lower interest rates than inflation, and to get people spending result in people not saving in deposit accounts, the banks will not have any money to lend. Money does not grow on trees.

George, London,

This has always been Labours intent, to nationalise the banks. Would not surprise me if the economy was wrecked on purpose to fulfil this aim. Is this part of some maniacal dream to introduce communism? With the bank profits, the welfare state can be expanded ensuring a huge Labour voting base.

Np, England, UK

All banks should be stripped of their status and nationalised.

I also said a long time ago the banking system should be 'disinvented'.

'bankers' are corrupt, self grasping, greedy and totally self interested.

Get rid of them all. Start again with some more emotional intelligence and compassion.

gordon mann, walton, uk

And so we stroll into a socialist dictatorship!

andy, london,

Brown - call an election and lets us have a vote on your years of incompetence as chancellor. You created this mess and you aren't the one to save us from it.

Alex Wilson, London,

Banks do not lend their money they lend OUR money. And I expect them not to take excessive risks.

The issue is that banks are no longer willing to lend at the required income multiples and high LTVs to support the still overvalued house prices. A significant correction is still required.

Peter MacKay, Burton on Trent, UK

The value of a house is the sum of its parts in bricks,timber,land, plastic and the labour it costs to make it. Any attempt to make it cost more pounds than that (for the average house about £50K) is as doomed as pushing string uphill.

Or else there will be general inflation.

Pedro, Stratford, UK

This is the result of you lending to the bank at guaranteed 12%, drastically cut the opportunity cost for the bank hoarding money by lower Bank rate to 3% and expect banks to lend at a rate much much less than the cost of capital you provided. Lord M, readjust all interest to unblock bank cash

S Yogarajah, Harrow, UK

So, Labour will nationalise all banks if they do not follow government orders. This smacks of the start of totalitarianism; State Banks, state control,5 year plans, all monitored by state bureaucracies.
It's Communism by the back door.
Well done, to Comrades Brown and Mandelson !

R.McGeddon, London, England

Legal action against banks who refuse to resume lending?! Are you having a laugh Mendelson? It is the irresponsible loan and easy credit that leads us into the mess in the first place! Banks forced to loan?! Talk about controlled economy - this has all the showing of a far left government.

Chris, Cambridge,